Bankruptcy Filings and Public Companies Weigh on ARM Industry Index

Published on:
8 December 2006 at 06:32 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00040085-bankruptcy-filings-and-public-companies-w/

The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, has decreased 1.2% to 1454.2. The decrease is attributed to downward movement in the market capitalization of publicly traded ARM stocks and an increase in the number of bankruptcy filings. Overall, the KGI remains up 15.1% year over year and down only 1.3% from its all-time high of 1472.7.

?While there has been some downward movement in the Index, economic conditions for the industry as a whole are excellent,? said Paul Legrady, Director of Kaulkin Ginsberg?s Research Group.

The KGI is expected to dip in the third quarter as NCO Group completes its plan to go private and is delisted from public exchanges. The market capitalization of publicly traded ARM companies will decrease significantly as a result.